Tai Sacco maintained an upward growth trajectory beating economic challenges to register good financial performance in the year ended December 31st, 2022. The Sacco management is now forecasting improved growth in 2023, supported by innovative products, digitization of operations, and enhanced service delivery.
The Society posted a 14% jump in turnover from Ksh 589.1 million in 2021 to Ksh 673.9 million last year, boosted by increased lending and efficient service delivery.
“The Society has made significant strides toward its goal of transforming the lives and enterprises of its members in the midst of tough economic periods, challenging climatic conditions, and rising inflation.
Huge determinations have been put in place to implement all the plans geared at realizing the full potential of our strengths in tapping any viable opportunities,” said Peter Mwaura, Board Chairman.
Tai Sacco has extended its reach, growing its agents from 67 in 2021 to 99 by the close of 2022, ensuring customers access services near their homes and workstations, which saw the number of daily transactions, grow immensely. The Society also implemented its digital transformation by accelerating the issuance of tills to businesses.
As a result, members’ deposits grew by 16% from Ksh 2.4 billion in 2021 to Ksh 2.8 billion last year, while the active membership recorded an 11% leap from 71,766 in 2021 to 79,376 in the year under review.
Mr Mwaura affirmed the Board’s commitment to strengthening good governance practices by developing and implementing the necessary governance policies and enhancing training and education for staff and members.
“The Sacco will remain innovative while expanding its presence nationally. The increase of Sacco agents and members using digital platforms, the invention of M-Pesa till services, the introduction of new products, and the reengineering of our processes, have been a game-changer, yielding better results,” said Mr Mwaura.
Through our Alternative Business Channels, such as mobile platform 645#, Tai Sacco App, and WhatsApp banking by sending “Hi” to 0704420000 and pay bill 644700, the Sacco has made banking better and more convenient for members. Members are able to manage their finances anytime and anywhere.
Tai Sacco has established an intricate risk management framework spurring growth and ensuring members’ funds’ safety.
With an asset base of Ksh 4.1billion, a loan book of over Ksh 3.4 billion and a membership of over 89,500 as of the end of 2022, Tai Sacco is soaring and spreading wings far and wide. Currently, it has a network of 10 branches in Githunguri, Gatundu, Kamwangi, Kagwe, Kigumo, Ruiru, Thika, Githurai, Kimende, and Nairobi and projecting to open a branch in Nakuru Town in the second quarter of 2023.
Its exemplary financial results have seen members take home good annual returns over the years. This year, the Sacco Board of Directors announced the payment of interest on deposits (6.5%) and dividends on shares (9%) amounting to over Ksh128.4 Million, a 17.7% growth from the previous year.
Speaking during the 31st Annual Delegates Meeting (ADM) held at Mariapolis Centre-Kenyatta Road, Mr Mwaura expressed his satisfaction that the Sacco has greatly empowered entrepreneurs to achieve their development goals by offering affordable and accessible loan facilities.
He noted that Micro, Small, and Medium Enterprises (MSMEs) are key drivers of economic development and employment creation, but these enterprises face constraints in accessing credit for their business needs.
“We have continued to support small-scale farmer cooperatives in the areas of creating efficiencies in the milk collection process, record management, and controls through the installation of system software. This has enhanced farmers’ confidence, reducing costs and wastage, as they will track performance in any instance. We have also established decent demonstration farms throughout the dairy farming areas in strategic locations,” said the Chairman.
Established in 1992, Tai Sacco members from various sectors of the economy, among them farmers, the business community, civil servants and pensioners, county employees, salaried in public and private sectors, the transport industry, groups and SMEs and diaspora members.
By re-engineering some of its products, such as Makao loan, an affordable housing mortgage, Tai Sacco was able to register excellent results, with the uptake of the product growing by 154% last year.
“We recorded a growth of 33.8% in our loan book to close at Ksh. 3.45 billion, which boosted our total assets to Ksh. 4.1 billion at the close of the year,” Mr John Mwangi, Sacco CEO, said. “Tai has remained on an upward trajectory largely because we continue to expand, enabling new members to join the Sacco and conveniently access our services and products.”
Tai Sacco’s corporate social responsibility is embedded in three pillars education, health, organizing medical camps and talks and environment (tree planting activities and cleaning towns). Under Tai Foundation, the Sacco offers education sponsorships to needy and vulnerable students.
Under its Aquila Insurance Agency, the Sacco provides a wide range of insurance products and services.
